Bitcoin (CRYPTO: BTC) new all-time high of about $109800

Bitcoin (CRYPTO: BTC) new all-time high of about $109,800 will eventually look like a small hill in comparison to the heights it will likely reach

The Ministry of Finance and the Central Bank of Russia announced on Monday, May 15, that they would be launching a pilot of a new cryptocurrency exchange, accessible to certain qualified investors and the companies that they are associated with, at least at first. The exchange would be covered by an experimental legal regime, designed to test regulation of the industry, with digital assets legalized and transactions above-board. The move follows a proposal from the central bank in mid-March that planned for the introduction of the experimental legal regime so as to create a safe environment for developing sound regulations that would enhance the cryptocurrency industry's viability in the country.

The government will also launch another pilot, which seeks to test the use of cryptocurrencies in settling trade payments. This builds on a more informal scheme that was in operation since at least late last year, in which the country's companies have been using Bitcoin to pay for commodities like oil to dodge international sanctions. It's also somewhat in conflict with Russia's policies regarding citizens using crypto for payments to each other, which is still banned, at least for now.

The pilots will run for a year, during which time the authorities will observe the activity on the exchange and the efficiency of the trade payment scheme. They will also be assessing whether it is possible to open up the exchange to a wider class of investor and to enable greater participation in the trade payment scheme. Their findings will then be used to decide whether to introduce an enduring legal framework for cryptocurrencies in the country.

Where to invest $1,000

As if there weren't enough reasons to be bullish about Bitcoin (CRYPTO: BTC), it seems like we've found yet another one, in an unexpected place: Russia.

The Ministry of Finance and the Central Bank of Russia announced on Monday, May 15, that they would be launching a pilot of a new cryptocurrency exchange, accessible to certain qualified investors and the companies that they are associated with, at least at first. The exchange would be covered by an experimental legal regime, designed to test regulation of the industry, with digital assets legalized and transactions above-board. The move follows a proposal from the central bank in mid-March that planned for the introduction of the experimental legal regime so as to create a safe environment for developing sound regulations that would enhance the cryptocurrency industry's viability in the country.

The government will also launch another pilot, which seeks to test the use of cryptocurrencies in settling trade payments. This builds on a more informal scheme that was in operation since at least late last year, in which the country's companies have been using Bitcoin to pay for commodities like oil to dodge international sanctions. It's also somewhat in conflict with Russia's policies regarding citizens using crypto for payments to each other, which is still banned, at least for now.

The pilots will run for a year, during which time the authorities will observe the activity on the exchange and the efficiency of the trade payment scheme. They will also be assessing whether it is possible to open up the exchange to a wider class of investor and to enable greater participation in the trade payment scheme. Their findings will then be used to decide whether to introduce an enduring legal framework for cryptocurrencies in the country.

So how is all of this bullish for Bitcoin? Well, in the simplest terms, it suggests that Russia's disposition toward cryptocurrency, and specifically Bitcoin, is changing rapidly. Already, the country is getting utility out of using the coin to evade sanctions, and now it's creating testing grounds that could lead to it opening the doors to investments from its capital base relatively soon.

And that will increase demand for Bitcoin, in addition to paving the way for further investment in the country's Bitcoin mining capacity. Russia is already responsible for about 4.6% of the world's mining output.

As more countries create sensible regulatory regimes to govern cryptocurrency, the more the industry will be able to flourish globally. Investors should take care to recognize that many will prefer to start with regulations that may seem to be overly restrictive before slowly opening up the playing field once certain issues are settled to the satisfaction of those in power.

On that note, it's probably best not to expect Russia to legalize all cryptocurrency transactions and assets tomorrow, or even next year because its central bank is concerned about the prospect of citizens using stablecoins that are backed by fiat currencies it does not control. Still, its careful experimentation with crypto is likely to be a blueprint for developing nations that want to evaluate whether they would gain value by implementing policies like a Bitcoin reserve or legalized trading. This is a global trend that will take years to fully develop, and it's possible that there will be setbacks along the way.

Of course, Russia isn't the only country actively going through a regulatory revision as it pertains to Bitcoin. Many other nations, including rich and powerful ones like China, are currently calculating whether it makes sense to hold some Bitcoin, or perhaps even buy it or mine it. At least a few of them are